Construction Loan, Fix & Hold

[Matthew Matulis]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $25,000

This deal needed to be completely redone inside but had great bones and potential. I used a construction loan to finance the purchase and 60K worth of work and refinanced into a conventional mortgage.

What made you interested in investing in this type of deal?

It had great potential (a really strong rental market) but it just needed work to get rent ready.

How did you find this deal and how did you negotiate it?

I found it online and used my Realtor to negotiate it

How did you finance this deal?

Construction loan, transitioned to conventional.

How did you add value to the deal?

New Kitchen, Flooring, Paint, and Removed a large wall to create an open floor plan,

What was the outcome?

A cash-flowing property with relatively low money down

Lessons learned? Challenges?

If contractors say 3 months expect for 6 :), and who you work with to finance your deal is vitally important.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Michael Matulis in Columbia SC